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New Patent Extends Broadcast Internationalís CodecSys Video Compression Technology to Storage Market


Tuesday, December 16, 2008

Salt Lake City, UT -- Broadcast International ("BI") today announced its first patent that specifically addresses video compression in the burgeoning media storage and distribution markets. The new patent is for multi-codec video compression in multimedia distribution and storage applications involving non-volatile memory devices such USB memory sticks, Flash drives or SD cards.

This is the fourth base patent granted to Broadcast International in multi-codec video compression. In August of 2007, a patent was granted for the core CodecSys video compression technology, which enables multiple expert codecs (used in the compression of video signals for transmission) to be used to slash bandwidth needs for video transmitted over satellite, cable, IP and wireless media. The technology allows, for example, many more HDTV channels to be transmitted without a corresponding increase in bandwidth.

In June, 2008, Broadcast International added a patent for intelligently switching among the internal settings of a single codec to maintain a target data rate, while ensuring video quality. Earlier this month, a patent was announced covering the use of a "super codec system" comprising multi-codec subsets and dynamic adjustable setting preferences all combined in one application. The new patent covers the storage of a compressed media signal in which at least two scenes are selectively compressed using different codecs from a codec library, resulting in multiple codec compression.

New patent expands BI's market into high-growth storage arena

"This new patent expands our intellectual property for CodecSys into the growing storage arena, where better compression will enable greater storage efficiencies," said Rod Tiede, CEO of Broadcast International. "The addition of media storage to the traditional video compression market - already a multibillion dollar market -- significantly expands our market opportunity. We look forward to becoming an important a contributor to this major new segment. In addition to the unrivaled power of our compression technology, we also bring an entirely new software-based approach to video encoding. This ensures that customers' investments are protected since they can upgrade their encoders to meet the latest standards through simple, economical software downloads instead of expensive hardware replacement."

The new U.S. patent is the tenth international patent allowed for Broadcast International's video compression technology. In addition to the four base patents, international patents have been granted for the core CodecSys multi-codec switching technology in Australia, Singapore, India, Korea, Malaysia and Russia.

About CodecSys video compression

Broadcast International's CodecSys software utilizes a patented, multi-codec approach in which a video stream is analyzed and the codec best-suited for a particular frame or video sequence is automatically selected from an entire library of specialized codecs.

These specialist codecs are designed to handle particular types of high-bandwidth video frames or streams, such as fast-motion sequences in a basketball game or explosions in an action movie. These types of video are extremely bandwidth-intensive and pose chokepoints to generalist codecs. By selecting the best expert codec for the job, CodecSys is able to eliminate these chokepoints and offer performance several times higher than competitive products.

One of the key benefits of the CodecSys software approach is that CodecSys-based video encoders can be easily changed as standards and requirements evolve. With CodecSys, codecs can be upgraded and added through simple, cost-effective software downloads. Other commercial solutions based on embedded systems require costly, full replacement.

This upgradeable, "future-proof" approach eliminates the need for the costly replacement cycles required with encoders based on tightly-coupled hardware/software architectures.

About Broadcast International

Broadcast International is a leading provider of video-powered broadcast solutions, including IP, and digital satellite, Internet streaming and other types of wired/wireless network distribution. BI's patented CodecSys software is a breakthrough, artificial intelligence-based video compression technology that cuts video bandwidth requirements more than 80% over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of applications such as streaming video to cell phones, and offers unprecedented price/ performance benefits for existing applications such as HD video.

Broadcast International is a public company headquartered in Salt Lake City UT. For more information go to www.brin.com and www.codecsys.com.

Forward-Looking Statements

All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption "Additional Factors That May Affect Our Business" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.



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